What Does Freight All Kinds (FAK) in Shipping Means?

Freight All Kind (FAK) is a classification used by consolidators, freight forwarders, logistics service providers, etc. to quote rates to their customers for Less-than Truck Load (LTL) shipments.

It relates mainly to customers who ship different types of cargo in small quantities, in one lot, that may not necessarily be a Full Truck Load (FTL).

To understand the FAK better, let us first see what the HS is all about. While exporting or importing goods, they are classified according to the Harmonized Commodity and Coding System simply known as the Harmonized System or HS. The HS code helps to determine the correct duties and taxes to be paid to the government by the exporter or importer.

Freight All Kinds

Harmonized codes help analyze and monitor the various trade policies of the government, keep track of its trade quotas, and the movement of controlled goods. It is also used in charging freight rates.

The list of harmonized codes is published by the World Customs Organization (WCO) every 5 years. About 98-99% of merchandise that is traded in the world is covered under the HS.

If we take an example where 3 pallet loads of about 100 different items are to be transported, their classification according to HS codes will be a time-consuming and cumbersome process. It can also lead to invoicing and documentation errors. This is where FAK classification help to simplify the process.

An FAK term negotiated between the customer and the consolidator helps to simplify the freight rate calculation and invoicing process when there are several different types of items. The main carrier may, however, charge its customer based on specific commodities or HS codes.

It may be economical for such customers to transport under the FAK rates even though a minimum charge is fixed by the consolidator.

However, for the different types of goods to qualify under the FAK classification, they have to meet certain criteria. This includes, but is not limited to the following:

The weight and density of the different goods should not vary too much between them.

The products should be more or less of similar dimensions so that they may be stowed properly for shipment.

You might also like to read:

Disclaimer: The authors’ views expressed in this article do not necessarily reflect the views of Marine Insight. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Marine Insight do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendations on any course of action to be followed by the reader.

Do you have info to share with us ? Suggest a correction

Latest Maritime Law You Would Like:

Damaged Shipping Containers – Causes And Types

Posted on
Careless or inexperienced MHE operators can cause containers to hit against each other and result in extensive damage. Let’s take a look at different causes and types of Damaged Shipping Containers.
Port Services (3)

What are Port Services?

Posted on
Port operations are normally controlled by the port authority appointed by the respective government of the country. Find out more about port services that are required to support these operations.

How is Management of Empty Shipping Containers Carried Out?

Posted on
A common challenge faced by container Carriers relates to the handling and movement of empty containers. Learn how shipping lines manage empty containers to ensure optimal returns, minimise idle time, and maximise asset turnover.

About Author

Hari Menon is a Freelance writer with close to 20 years of professional experience in Logistics, Warehousing, Supply chain, and Contracts administration. An avid fitness freak, and bibliophile, he loves travelling too.

Get the Latest Maritime News Delivered to Your Inbox!

Our free, fast, and fun newsletter on the global maritime industry, delivered everyday.

Leave a Reply

Your email address will not be published. Required fields are marked *